Afrox wins the South African healthcare medical contract

African Oxygen Limited (Afrox) (JSE: AFX) has been awarded the South African State Healthcare Contract to supply medical gases to Government hospitals, National Treasury has confirmed.

The award is effective immediately across all nine provinces of South Africa. The company has until the end of September 2018 to extend its supply operations to additional Government healthcare facilities in Kwa-Zulu Natal, Free State, North West and Mpumalanga provinces. In total, Afrox will supply more than 400 hospitals and 1600 clinics across South Africa.

“Afrox supports the Department of Health’s (DoH) aspirations and we have been working to ensure our processes, distribution and supply chain operate at efficiency levels to meet the expectations of the entire healthcare sector in South Africa,” said Afrox CEO, Schalk Venter.

“We have long identified the healthcare sector as a growth point and have been concentrating our efforts in recent years to ensure Afrox can operate at efficiency levels to win this new business.

“Being awarded the contract for the provision of medical gases to state hospitals across South Africa underscores this achievement and affirms Afrox’s capability as the leading provider to healthcare services in Southern Africa offering security of supply of quality products.”

Afrox has an unmatched footprint, in terms of plants and filling sites, for the safe production and transport of medical grade gases across South Africa. The company’s health and safety practices and full healthcare products range are produced to both South African and international standards, driven by research and innovation of The Linde Group and its global investments in healthcare.

Said Venter: “We have the production and filling capacity to meet Government’s healthcare requirements for medical gases, and processes and systems in place, backed by a skilled workforce and robust supply chain.

“Afrox has decades of experience in supplying the healthcare sector in South Africa, both private and state requirements, and we are delighted National Treasury has recognised Afrox as the partner of choice to support the DoH to deliver on its mandate to Government hospitals, clinics and health centres in South Africa for the next five years.”

The Government provides full medical services to the more than 45 million South Africans who fall outside the private medical aid net and as a result are dependent on public healthcare. Latest figures from Statistics SA show provincial government expenditure on public healthcare stands at over R150 billion a year.

“Afrox is fully behind Government initiatives to better the lives of South Africans,” said Venter. “We are committed to and have invested in B-BBEE programmes and 30% of the total contract value has been contracted to black owned SMMEs.”

The new State Healthcare Contract runs from October 2017 to September 2022 and provides for the supply of a range of medial and other gases including oxygen, nitrogen, nitrous oxide, carbon dioxide, hydrogen, helium, argon, gas mixtures and refrigeration gases, among others.

State hospitals also have the opportunity to utilise Afrox’s state-of-the-art Integrated Valve Regulator technology, which combines the cylinder valve, regulator, content gauge and flow controls into a single piece housed in a virtually indestructible protective guard.

The Integrated Valve Regulator is fitted to a cylinder to form a lightweight, ready-to-use mobile gas package solution. It is designed to help medical staff work more effectively. Flow is capable of being precisely controlled to the required level prescribed by the clinician. And with more flow settings, you can set the treatment exactly to meet patient needs.

“As The Linde Group rolls out new innovations in healthcare, these will become available to South African’s through Afrox,” confirmed Venter. “Affordable healthcare for all is the Government’s goal and Afrox is proud to be a partner in delivering on such a nationally important promise.”

EDITOR NOTES:

African Oxygen Limited (Afrox) is sub-Saharan Africa’s market leader in medical and industrial gases and welding products. Afrox was founded in 1927, listed on the JSE in 1963, and has prospered by constantly meeting the needs of customers and developing solutions that add value to customers’ applications. Afrox is a Level 4 rated Broad-Based Black Economic Empowerment (B-BBEE) organisation. Our parent company is The Linde Group, a global gases, engineering, and technology company. More at www.afrox.co.za

In the 2017 financial year, The Linde Group generated revenue of EUR 17.113 bn, making it one of the leading gases and engineering companies in the world, with approximately 58,000 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business, with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at www.linde.com